Metros, agglomeration and displacement. Evidence from London
File(s)
Accepted version
Author(s)
Pogonyi, Csaba G
Graham, Daniel J
Carbo, Jose M
Type
Journal Article
Abstract
This paper uses data on the location and movement of establishments and employment in London to estimate the impact of a metro opening on the spatial distribution of economic activity. In addition to fixed effect methods, we employ a planned-route instrumental variables methodology which uses planned but abandoned metro alignments. We find that areas within walking distance to stations experience a positive effect, whereas areas further but still within 2000 meters experience a significant negative impact. Our results provide empirical evidence for the model of Redding and Turner (2015) as areas close to the transport scheme but not subject to it are worse off than areas further away. The results suggest no growth, only displacement on the local level: the metro shifted economic activity closer to the stations.
Date Issued
2021-09-01
Date Acceptance
2021-04-14
Citation
Regional Science and Urban Economics, 2021, 90
ISSN
0166-0462
Publisher
Elsevier BV
Journal / Book Title
Regional Science and Urban Economics
Volume
90
Copyright Statement
© 2021 Elsevier Ltd. All rights reserved. This manuscript is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Licence http://creativecommons.org/licenses/by-nc-nd/4.0/
Identifier
https://www.sciencedirect.com/science/article/pii/S0166046221000417?via%3Dihub
Subjects
1205 Urban and Regional Planning
1402 Applied Economics
1403 Econometrics
Economics
Publication Status
Published
Article Number
ARTN 103681
Date Publish Online
2021-05-29